Sam& Cat Hotel operates 49 weeks per? year, 5 days per week. It purchases kitty litter for $ 6.50per bag. The following information is available about these? bags:
Demand= 75 bags/week
Order cost? = ?$65?/order
Annual holding cost? = 25 percent of cost
Desired cycle-service level=92 percent
Lead time? = 1 ?week(s) ?(5 working? days)
Standard deviation of weekly demand? = 10 bags
Current on-hand inventory is 250 ?bags, with no open orders or backorders.
Suppose that? Sam's Cat Hotel uses a P system. The average daily? demand, d, is (75/5), and the standard deviation of daily demand is 4,472 bags.
a. What P? (in working? days) and T should be used to approximate the cost? trade-offs of the? EOQ?
The time between orders, P should be ??? days. (Please enter your response to the nearest whole number).
b. How much more safety stock is needed than with a Q? system?
??? bags (Please enter your response to the nearest whole number)
c. It is time for the periodic review. How much kitty litter should be? ordered?
??? bags (